How to trade forex without investments? Demo account
The foreign exchange market develops according to certain laws that a novice trader will have to study. He can take courses organized by many brokerage companies. You can master the theoretical knowledge necessary for Forex trading on your own.
On the Internet you can find a lot of literature on this topic and video tutorials. There comes a time when a beginner in Forex decides that he is ready for practical training. They are held on a special simulator or demo account. All brokers have similar equipment. After signing a contract with one of them, it becomes available to his clients.
Demo account for beginners
A demo account is necessary to gain experience in trading on the currency exchange. A trading strategy or several is being rolled on it. In any case, the trader should choose the one that is clear to him, simple and easy to use.
The simulator allows the player to feel the atmosphere of the market and try himself in business without risking his own money. Trading on it takes place using virtual money. At the same time, the real Forex situation is recreated here on the basis of historical data.
The duration of classes on a demo account depends on the abilities of a novice trader. Currency market experts recommend starting a real game when virtual trading begins to bring a steady “income”.
After replenishing his deposit, which should not exceed the minimum allowable amount set by the broker, the beginner will be fully ready to start the trading process.
Trading on a real account
During the first year of his Forex activity, he should not forget about the high financial risks that lie in wait for him. It will be possible to minimize them if several different transactions are opened at the same time, and the amount of one bet is limited to 1/100 of the deposit. When investing money in one trading operation, no matter how winning it may seem, there is a great risk of losing money. If there are several open trading positions, some of them will definitely give a positive result and cover the loss.
It is mandatory to set a limit on winning and losing (stop profit and stop loss). If the trader’s income or losses reach the values set in them, trading is automatically terminated. The presence of the first order will not allow a beginner to lose all his money in the pursuit of profit, and a stop loss will limit his losses if he loses.
Published: 12 August, 2021